Goldman Sachs ready to pump millions into investing in crypto-currency companies

US multinational investment banking giant Goldman Sachs is reportedly set to invest tens of millions of dollars in crypto-currency companies that are currently struggling amid the FTX implosion.

According to an exclusive report by Reuters, citing comments from Mathew McDermott, head of digital assets at Goldman, the current sentiment in the industry and the effect on startups has led to many unique deals that have become very attractive to banks.

Mathew McDermott remained mum on exactly how much money the company plans to put into the proposed investments.

“We’re seeing some really interesting opportunities at much more reasonable prices,” Mathew McDermott said.

The collapse of FTX Derivatives Exchange after the revelation of its shaky finances and unethical ties to its sister company, Alameda Research, has shattered investor confidence in the sector. Notably, more and more investors are bracing for the coming avalanche as the contagion from FTX’s implosion has continued to spread to companies like BlockFi and Genesis.

In total, institutional investors are now looking to regulated and established banking firms that offer crypto-currencies to continue their trading activities. Mathew McDermott confirmed this trend, saying that the trading volume recorded by his unit since FTX’s bankruptcy was made public has seen remarkable growth.

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What has increased is the number of financial institutions that want to trade with us“, he said. “I suspect that a number of them have negotiated with FTX, but I can’t say with absolute certainty.

Despite the already chilled feelings that were compounded by FTX, Mathew McDermott said Goldman Sachs sees long-term potential in the industry because of its underlying technology.

This definitely set the market back in terms of sentiment, there is absolutely no doubt about it“, said Mathew McDermott. “FTX was a poster child in many parts of the ecosystem. But to reiterate, the underlying technology continues to perform.

Besides Goldman Sachs, other banks have different positions on crypto-currencies

That Goldman Sachs is bullish on crypto and willing to do whatever it can to capitalize on the current situation is not a unique push overall. Right now, major banks and financial institutions have mixed feelings on how to approach crypto assets.

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Like Goldman Sachs, banks like Morgan Stanley and HSBC Holdings have a more skeptical stance on crypto-currencies. Despite the growing public demand for crypto products and services, HSBC CEO Noel Quinn has stated flatly that the bank has no plans to offer any form of crypto trading or investment activities to its retail customers.

Unlike the bank, however, Britannia Financial Group, a London-based financial services provider, is gradually building its crypto unit, based on the long-term potential it sees for the industry.

We have seen increased customer interest since the demise of FTX” he said. “Customers have lost confidence in some of the startups in the industry that are purely doing crypto, and are looking for more reliable counterparties.

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